HARRY HUGHES, Governor                                     1609

(D)  THE FUNDS DISTRIBUTED UNDER THIS SUBTITLE AND ALLOCATED
TO A COUNTY OR MUNICIPALITY SHALL BE ACCOUNTED FOR AND AUDITED IN
ACCORDANCE WITH THE PROCEDURES FOR THE ACCOUNTING AND AUDIT OF
OTHER GOVERNMENTAL REVENUES. HOWEVER, ANY FUNDS NOT EXPENDED BY
THE END OF THE FISCAL YEAR MUST BE PLACED IN A SPECIAL FUND FOR
EXPENDITURE IN THE NEXT SUCCEEDING FISCAL YEAR. THE BALANCE OF
ANY FUNDS DISTRIBUTED UNDER THIS SUBTITLE THAT REMAINS
UNENCUMBERED OR UNEXPENDED BY THE COUNTY OR MUNICIPALITY AFTER
THE SECOND FISCAL YEAR SHALL BE REPAID TO THE SECRETARY FOR
DEPOSIT IN THE GENERAL FUND OF THE STATE. THE COMPTROLLER MAY
SET OFF ANY SHARED REVENUES DUE A LOCAL GOVERNMENT IN LIEU OF
REPAYMENT UNDER THIS SUBSECTION. THE FUNDS DISTRIBUTED UNDER
THIS SUBTITLE TO BE EXPENDED BY A VOLUNTEER OR MUNICIPAL COMPANY
SHALL BE MAINTAINED IN A SEPARATE ACCOUNT AND SHALL BE AUDITED IN
THE SAME MANNER AS OTHER FUNDS OF THE VOLUNTEER OR MUNICIPAL
COMPANY ARE AUDITED. COPIES OF THE AUDIT OF THE ACCOUNT SHALL BE
SUBMITTED TO THE RESPECTIVE COUNTY AND MUNICIPAL GOVERNMENTS
GOVERNMENT AND THE DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONAL
SERVICES.

(E)  (1) EACH COUNTY AND MUNICIPALITY SHALL SUBMIT TO THE
SECRETARY OF PUBLIC SAFETY AND CORRECTIONAL SERVICES BY NOVEMBER
1 OF EACH YEAR, A REPORT CONTAINING THE FOLLOWING INFORMATION FOR
THE PRECEDING FISCAL YEAR:

(I) THE AMOUNT OF FUNDS DISTRIBUTED TO EACH
RECIPIENT AND THE PURPOSE OF EXPENDITURE OF THESE FUNDS
CATEGORIZED AS PROVIDED IN SECTION 45B(D)(1) OF THIS SUBTITLE;

(II)  THE AMOUNT AND DISPOSITION OF ANY
UNENCUMBERED OR UNEXPENDED FUNDS; AND

(III)  THE AMOUNT OF EXPENDITURES BY THE COUNTY
OR MUNICIPALITY FOR FIRE PROTECTION.

(2)  A COPY OF THIS REPORT SHALL BE PROVIDED TO THE
DEPARTMENT OF FISCAL SERVICES.

(3)  THE SECRETARY MAY WITHHOLD FUNDS WITH RESPECT TO
THE NEXT FISCAL YEAR FROM A COUNTY OR MUNICIPALITY WITHIN THE
COUNTY IF THE COUNTY OR MUNICIPALITY DOES NOT COMPLY WITH THE
PROVISIONS OF THIS SUBTITLE. FAILURE TO COMPLY AFTER NOTICE AND
OPPORTUNITY FOR A HEARING MAY RESULT IN THE FORFEITURE OF THE
ALLOCATED FUNDS, EITHER IN PART OR IN FULL, AND REVERSION TO THE
STATE GENERAL FUND.

(F)  THE SECRETARY SHALL REPORT ANNUALLY TO THE GOVERNOR
AND, SUBJECT TO § 2-1312 OF THE STATE GOVERNMENT ARTICLE, TO THE
GENERAL ASSEMBLY, AS TO THE INFORMATION PROVIDED BY COUNTIES AND
MUNICIPALITIES ON THE DISTRIBUTION OF AID PROVIDED UNDER THIS
SUBTITLE WITH AN ASSESSMENT OF THE EXTENT TO WHICH THE PURPOSES
OF THIS SUBTITLE ARE BEING ACHIEVED.

46A.